Next week will be eventful for equity markets, with results from 163 S&P 500 companies, a Federal Reserve meeting and the release of the personal consumption expenditures price index. Alphabet, Amazon and Microsoft will be in focus after disappointing results from Meta and Tesla, as investors question the sustainability of AI-related spending, which could reach $100 billion. Meta fell more than 8% over the week, semiconductor stocks dropped over 15% in October and memory stocks lost more than 20%. The Federal Reserve is expected to hold rates between 3.75% and 4.00%, followed by a PCE reading projected at 0.5% for the month and 3.1% year over year for core inflation. Despite the cautious backdrop, 82% of reporting companies have beaten earnings expectations, and S&P 500 earnings growth for the third quarter is estimated at roughly 30%.
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